KUALA LUMPUR, Aug 24 — GTA Holdings Berhad could offer significant upside to investors, with Malacca Securities assigning a fair value of RM0.58 per share, representing a 65.7% premium to its IPO price of RM0.35 per share. The valuation is based on a forward price-to-earnings multiple of 17 times FY2027 earnings, reflecting confidence in the group’s growth prospects within Malaysia’s aviation maintenance, repair and overhaul (MRO) industry.
Through its subsidiary Global Turbine Asia Sdn Bhd, GTA provides MRO services for helicopter and fixed-wing turbine engines, modules and components, while also supplying aviation equipment to military and civil aviation customers. The company has established a strong competitive position as Malaysia’s sole Safran Certified Maintenance Centre and the only EPI Approved Maintenance Organisation, creating significant barriers to entry for potential competitors.
A key strength lies in GTA’s longstanding relationship with the Ministry of Defence (Mindef), which contributes the majority of its revenue through multi-year maintenance support contracts. These include Availability Support Packages (ASP) and In-Service Support (ISS) agreements that provide recurring earnings visibility and predictable cash flow.
Looking ahead, GTA plans to expand into aircraft landing gear, wheels and brake MRO services, while pursuing opportunities in Brunei and the Middle East. The company will also utilise IPO proceeds to establish a new operating facility and support future growth initiatives.
The outlook for the sector remains positive, with Malaysia’s MRO industry projected to grow from RM13.81 billion in 2025 to RM22.15 billion by 2030. Against this backdrop, Malacca Securities expects GTA’s earnings to remain on an upward trajectory, supported by contract renewals, capability expansion and regional growth opportunities.
With its niche market position, strong government relationships and attractive valuation, GTA is emerging as a notable new listing within Malaysia’s aerospace and defence support industry.
